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From Jude Chinedu, Enugu
Former Speaker of the Abia State House of Assembly and the All Progressives Congress (APC) House of Representatives candidate for Ikwuano/Umuahia Federal Constituency, Rt. Hon. Chinedum Orji, has said President Bola Ahmed Tinubu’s fiscal reforms are laying the foundation for a more sustainable, tax-driven economy by reducing Nigeria’s long-standing dependence on crude oil revenues.
In a statement on Tuesday, Orji argued that the Tinubu administration inherited a fragile fiscal system built largely around crude oil earnings but has since embarked on reforms aimed at strengthening public finance through subsidy removal, improved tax administration and expansion of non-oil revenue sources.
According to him, rather than waiting for another oil price boom to rescue government finances, the administration chose to rebuild the country’s revenue framework.
“Rather than wait for another oil boom to bail out the treasury, his administration chose to rebuild the plumbing of public finance: tax administration, digital collection, and a non-oil base wide enough to stand on even when barrels wobble,” Orji wrote.
The former Speaker described the removal of petrol subsidy in May 2023 as the first major step in the fiscal reset, noting that it significantly boosted government revenues.
He cited figures showing that Federation revenue rose from ₦16.8 trillion in 2023 to ₦31.9 trillion in 2024 following the policy shift.
Orji also said statutory allocations to states and local governments increased from ₦6.16 trillion in 2023 to ₦15.26 trillion in 2024, providing sub-national governments with greater financial capacity to invest in roads, education, healthcare and other critical infrastructure.
He noted that the gains from subsidy removal were complemented by reforms aimed at modernising tax administration through digital collection systems, data integration and improved compliance.
According to him, government has broadened its revenue drive beyond the oil sector to include telecommunications, financial services, manufacturing, trade and the rapidly expanding digital economy, including fintech firms, e-commerce platforms and content creators.
“No economy grows sustainably when only oil companies and big banks pay taxes while millions of profitable businesses stay off the books,” he stated.
Orji further pointed to what he described as positive fiscal outcomes of the reforms, including a narrower budget deficit, stronger external reserves and the clearance of a $7 billion foreign exchange backlog, saying these developments have helped improve investor confidence.
He, however, acknowledged that the reforms have imposed short-term hardships on many Nigerians through rising transportation, food and energy costs.
“The social contract of these reforms is still being negotiated. Households felt the pain first — higher transport, higher food, higher power bills. The promise is that the gains will be recycled into infrastructure, education, and health,” Orji said.
He stressed that the long-term success of the reforms would ultimately depend on effective implementation and the government’s ability to convince citizens that the sacrifices are yielding visible improvements in public services.
“Nigeria is still an oil country. But for the first time in a long time, it is budgeting like it might not always be,” he concluded.
